Asset Management Policy

POLICY REGISTER Ref: POL 001

Asset Management Policy Page - 1

ASSET MANAGEMENT POLICY

Infrastructure Assets POLICY REFERENCE NUMBER: POL-001 Original publication date June 2009

Revision number Issue Date Approved at Approval date 0 June 2009 E-Team September 2011 1 September 2011 E-Team November 2011

This document is to be reviewed bi-annually. Next review date: June 2013

RESPONSIBLE DIRECTOR Director Infrastructure Services

PART 1: INTRODUCTION This Asset Management policy reflects Council’s Vision, Mission, and asset management objectives for infrastructure assets as encapsulated in the Wagga Wagga Community Strategic plan and also the Asset Services Review 2006. In early 2010 the community developed a vision for Wagga Wagga as part of the This Way Wagga Wagga - Vision 2030 project.

A thriving, innovative, connected community On the Murrumbidgee Rich in opportunity, choice, learning and environment Where paths cross, where people meet

1.1 Legislation

Local Government Act 1993. and the subsequent Regulations under the Act.



1.2 Policy Objectives

The objective of this policy is to define Councils management of infrastructure assets and to outline the delivery of infrastructure service that strives to meet community expectations of time, quality, and value for money. This Policy outlines the management of the assets listed in Appendix 1 of this policy. This Asset Management Policy and associated Asset Management Strategy will complement and build upon the Community’s Strategic Plan and with its continued implementation and more formalised approach to asset management, principles and methodology; Council will achieve significant benefits including: • Clear direction and “ownership” of asset management; • A guide to better and more informed decision-making by Council, staff and community; • Integration of resources and knowledge and ability to plan for the present and future

generations • A framework to implement continuous improvement in asset management; • Meet community needs and expectations; • Manage Council’s risk; • Greater resource efficiency through the use of integrated systems; and • Compliance to State and Federal legislation

1.3 Definitions

• Infrastructure Assets – Include all Civil, Building, Recreational and Environmental Assets owned or managed by Council.

• Life Cycle Cost – The total cost of an asset throughout its life including planning, design, construction, acquisition, operation, maintenance, rehabilitation and disposal costs.

• Asset Register – A record of asset information considered worthy of separate identification including inventory, historical, financial, condition, construction, technical, and financial.

• Useful Life – The period over which a depreciable asset is expected to be used. • Asset Management Plan – A plan developed for the management of an infrastructure

asset or asset category that combines multi-disciplinary management techniques (including technical and financial) over the lifecycle of the asset. The Asset Management Plan establishes, for each Asset Category and sub category: • Levels of service – specifies the services and levels of service to be provided by

council. • Future demand – how this will impact on future service delivery and how this is to be

met.



• Life cycle management – how Council will manage its existing and future assets to provide the required services

• Financial summary – what funds are required to provide the required services. • Asset management practices • Monitoring – how the plan will be monitored to ensure it is meeting Council’s

objectives. • Asset management improvement plan

• Agreed Levels of Service – The performance, maintenance, and service standards for each asset class or category. Will be held in Asset Management Plans and will identify the applicable service levels required for each asset. These levels of service will dictate the necessary relationship between an asset’s performance and subsequent maintenance required to maintain that service level.

• Future Demand - rational basis for demand forecasting and selection of options for proposed new assets based on current asset data aligned with community growth and development.

1.4 Review procedures

This policy is subject to review on a 24 month basis and is the responsibility of the Manager, Infrastructure Planning.



PART 2: ASSET MANAGEMENT

2.1 Management Objectives

To achieve the objectives listed in this policy Council must increase its understanding of its owned asset base and the expectations of the community in relation to the maintenance of these assets. To achieve these objectives the following is necessary:

2.1.1 Understanding Customer Expectations All Infrastructure Services will be regularly reviewed to ascertain community’s service standard expectations. Council must initiate Community Satisfaction Surveys and Best Value Reviews to measure service delivery performance. 2.1.2 Asset Management Reference Group A multi-disciplinary and cross-functional Asset Management Working Group will be established to assist with the strategic asset management planning. Staff responsibilities for Asset Management activities shall be included in the Asset Management Plans, and also reflected in individual position descriptions. 2.2 Asset Planning and Budgeting 2.2.1 Council will adopt life cycle cost analysis for the management of infrastructure assets.

Each asset will be condition assessed and included in the asset management database. Projections of the life cycle of each asset will be extrapolated from data including current condition, intervention levels and forecast maintenance requirements.

2.2.2 Annual Capital Works Projects and Asset Preservation shall be subjected to technical

and financial evaluation and prioritised using pre-determined criteria and the principles determined by the Asset Management Reference Group and endorsed by the Director Infrastructure Services.

2.2.3. Council will regularly review its asset stock and identify opportunities for asset

rationalisation and condition improvement or asset replacement as required. 2.2.4. Wherever possible, predictive modelling will be used to develop and implement

preventative maintenance programs to ensure that lowest net life cycle cost is achieved and asset service potential is optimised.



2.3. Asset Operations and Maintenance 2.3.1 Annual Maintenance Plans shall be developed using asset condition data and shall

incorporate corresponding financial data supplied by Infrastructure Services. 2.3.2 All outsourced services shall be procured through a competitive process. 2.3.3 All services shall be regularly benchmarked to ensure Council is adopting best practice techniques. 2.4. Risk Assessment and Management 2.4.1 Council will maintain a program of regular inspection of assets under its control to

minimise Community’s risk. 2.4.2 Council will maintain a Quality and Occupational Health and Safety System for its employees and contractors working on Council assets. 2.4.3 Council will consider risk associated with each asset category in its Asset Management Plans 2.5. Asset Accounting and Costing 2.5.1 Council will maintain detailed asset registers for those asset categories as listed in

this policy. 2.5.2 Useful lives will be given to each of these assets with the written down value and

depreciation value determined in accordance with the current applicable accounting regulations.

2.5.3 Depreciation will be calculated using a method that reflects the true consumption of

the asset, or is an indication of the future cash flows necessary to sustain asset condition and maintain the required service level.

2.6. Asset Management Plans 2.6.1 Council will develop Asset Management Plans for each asset category. 2.6.2 These Asset Management Plans will be subjected to continuous improvement.



3. ASSET MANAGEMENT ROLES AND RESPONSIBILITIES To achieve the outcomes of this policy the following key roles and responsibilities are identified: 3.1. Council

• To act as stewards for infrastructure assets.

• To set corporate Asset Management policy and vision with linkage to the

Community Strategic Plan.

• To ensure appropriate resources and funding for Asset Management activities

are made available for Asset Management into the Infrastructure framework.

3.2. Executive Management Team • To continue to refine the "overarching" Asset Management Policy and the initial Asset

Management Strategy with linkage to the Community Strategic Plan for consideration

by Council.

• To recognise and embrace asset management as a corporate process

• To foster and support the principles of Asset Management and the Infrastructure

Planning Division.

• To implement and continuously review the corporate Asset Management Policy

and Strategy with agreed resources.

• To ensure that timely, accurate and reliable information is presented to council for

decision-making.

• Support and attend as required, meetings of the Asset Management Reference Group

3.3 Asset Management Reference Group

• Oversee the introduction and management of Asset Management into the Council

corporate structure

• Develop appropriate Policy and Strategy to support the Asset Management framework

implementation

• Make appropriate decisions on items such as suitability of software platforms,

applicable asset categories and Asset Management Plan content etc.



3.4 Infrastructure Planning Division of Council

• Chair the Asset Management Reference Group

• Draft an Asset Management Policy and procedures to implement policy.

• Develop an implementation strategy for Infrastructure asset management and

resource requirements utilising organisational mechanisms that reflect a corporate

approach.

• Introduce an Asset Management System for Council.

• Monitor the implementation of the Asset Management System.

• Maintain the Asset Management System.

• Provide linkage between the community, key stakeholders and the Councils asset

managers on management of Council assets.

• Encourage continuous improvement, innovation and cost effective methods to

improve Asset Management practices.

• Facilitate the development of Asset Management Plans and Capital Works Programs

with a reporting mechanism to Council executive and Council elect.



ASSET TYPE CLASSIFICATION SYSTEM

Asset Category Asset Sub-Category 1

Buildings Airport Buildings

Animal Control Buildings

Art & Performance Buildings

Child Care Buildings

Commercial Buildings

Community Halls & Club Houses

Health & Immunisation Buildings

Landfill Buildings

Libraries & Information Buildings

Museums & Cultural Buildings

Office & Depot Buildings

Pavilions & Exhibition Buildings

Public Amenities Buildings

Residential Buildings

Sports & Recreation Buildings

Other Structures


Infrastructure - Road and Bridge Local Road

Regional Road

Urban Road

Sealed Road

Unsealed Road

Access Roadways & Carparks

Cycleways

Concrete Road Bridges

Timber Road Bridges

Composite Road Bridges

Road Culverts

Kerb & Gutter

Footpaths

Pathways

Cycleways

Road Signage

Guardrail

Public Transport Shelters

Public Transport Seating

Bicycle Parking Facilities

Roundabouts

Medians

Pedestrian Crossing


Infrastructure - Salinity Evaporation Ponds

Infrastructure - Stormwater Covers, Inlets, Outlets and Junctions

Flood Gates

Flood Pumps

Gross Pollutant Traps

Inter Allotment

Levee Banks

Lined Open Drains

Pipes and Culverts

Sub-Soil

Unlined Open Drains

Infrastructure - Sewerage Access Chambers

Gravity Mains (including jump ups)

Pump Stations

Pipes

Rising Mains

Wastewater Treatment Plants

Infrastructure - Airport Aprons

Flexible Pavements

Rigid Pavements

Run up bay

Runway End Safety Areas

Taxiways


Infrastructure - Open Space Athletics Track

Baseball Diamond

Boat Ramps

Cemetery

City Entry Signage

Concrete Ponds & Waterfalls

Cricket Nets

Cricket Pitch

Croquet Courts

Cycle Tracks

Drinking Fountains

Fixed Bins

Fountains

Golf Course

Indoor Courts

Irrigation

Mini Field Rugby

Netball Court

Open Space Signage

Playgrounds

Playing Fields

Pumps

Revetment Walls / Retaining Embankments


Seating-Bench

Seating-Grandstand

Skate Park

Hockey Fields

Tables

Tanks

Tennis Court

Infrastructure - Solid Waste Cells

Leachate Manholes/Pumpwells

Leachate Sub-Soil Drains

Monitoring Boreholes

Asset Management Policy

Documents

Transcript of Asset Management Policy